First Quarter Sectoral Assessment Survey Results Published

The upward trend in the automotive aftermarket in 2023 continued in the first quarter of 2024, albeit at a slower pace. In the first quarter of 2024, the sector, which increased its sales, exports and employment, albeit limited, expects a 4.13 percent increase in sales in dollar terms in the second quarter of the year. According to the First Quarter 2024 Sectoral Evaluation Survey of the Automotive After Sales Products and Services Association (OSS); In the first quarter of 2024, there was an average increase of 1.27 percent in domestic sales in dollar terms compared to the same period of 2023. While 73.3 percent of the producer members did not plan to invest in the next three months, "excessive increase in costs" was the main problem observed in the first quarter of 2024. According to the survey, "problems in employment" stand out as an increasing problem especially for manufacturer members.

The Automotive Aftermarket Products and Services Association (OSS) evaluated the first quarter of 2024 in the automotive aftermarket through a survey organized with the participation of its members. According to the OSS Association's 2024 First Quarter Sectoral Evaluation Survey, the automotive aftermarket continued the upward trend experienced throughout 2023 in the first quarter of 2024. According to the survey; in the first quarter of 2024, domestic sales increased by an average of 1.27 percent in dollar terms compared to the first quarter of 2023. In this period, sales of distributor members increased by 2.44 percent, while sales of producer members decreased by 0.5 percent.

Sales are expected to increase by 4.13 percent in dollar terms in the second quarter!

The survey also included expectations for the second quarter of 2024. Accordingly, it was observed that an increase of 4.13 percent in domestic sales in dollar terms is expected in the sector in the second quarter of 2024. Commenting on the issue, Ali Özçete, Chairman of the Board of Directors of the OSS Association, said: "The 4.13 percent sales increase expectation stated in the report is a strong sign that the growth in our sector will continue. This upward trend shows that demand and consumer confidence in our sector is increasing."

Of the members of the OSS Association, 13.3 percent stated that the collection process has gotten better, while 25.3 percent stated that it has gotten worse. The collection process survey average score, which is evaluated out of 100 and was 52.7 in the last quarter of 2023, decreased to 47.7 in the first quarter of 2024.

Staff employment on the rise!

34.7 percent of the surveyed members increased their employment compared to the last quarter of 2023. 44 percent of the members maintained their employment in the said period. The rate of members who stated that their employment decreased compared to the last quarter of 2023 remained at 21.3 percent. Employment of producer and distributor members remained close to each other. Commenting on the increasing employment, Ali Özçete said, "The increase in employment indicated in the report shows that the workforce in our sector is getting stronger. However, problems in finding blue-collar personnel are at the top of the sector's agenda. Positive developments in employment will make a positive contribution not only to the growth of our sector, but also to the overall health of our economy."

The biggest problem is the excessive increase in costs!

The problems in the sector again constituted one of the most striking sections of the survey. While "Excessive increase in costs" came at the top of the problems observed by the members in the first quarter of 2024 with 80 percent, "Problems in cash flow" ranked second with 54.7 percent. 33.3 percent of the members described "Exchange rate and exchange rate increase" and "Cargo cost and delivery problems" as the third biggest problem for the sector. 30.7 percent of the respondents pointed to the loss of business and turnover, while 29.3 percent pointed to problems in employment. In addition, 26.7 percent of the participants listed problems at customs and 24 percent listed legislative changes as important problems. Commenting on the problems of the sector, Ali Özçete said, "The excessive increase in costs and the problems in cash flow have started to negatively affect the companies in the sector. If the problems continue for a certain period of time, the number of companies experiencing financial difficulties is likely to increase."

69.3 percent of the members do not have investment plans on their agenda!

The survey also scrutinized the investment plans of the sector. According to the survey, the rate of members who plan to make new investments in the next three months fell to the lowest level of the last period with 30.7 percent. In the previous survey, 56.8 percent of producer members planned to make investments, while this rate dropped to 26.7 percent in the new survey. Among distributor members, this rate decreased from 42.9 percent to 36.7 percent. It was observed that 25.3 percent of the surveyed members predicted that the sector would improve in the next three months. The rate of those who said it would get worse was determined as 24 percent. The average capacity utilization rate of manufacturers in the first quarter of 2024 was 77.33 percent. This rate was 81.62 percent in 2023. In the first quarter of 2024, members' production increased by 8.17 percent compared to the same quarter of 2023. In the first quarter of 2024, members' exports increased by 3.67 percent in dollar terms compared to the first quarter of 2023.

OSS Association President Ali Özçete said, "Although the negative picture in the survey results is a result of the anti-inflation policy, we adopt this policy and find it appropriate within the scope of the Medium Term Program (MTP). Although the automotive after-sales sector is seen as a consumer product, it is in a product group in the security class. The sector is moving away from making investments as a result of increasing operating expenses and difficulties in accessing cash. This situation, together with the deterioration in stock levels, may cause difficulties in the access of the end consumer to the product and security vulnerabilities in the coming months. In this context, the biggest expectation of the sector stakeholders is the recognition of sectoral exemptions or tax advantages in cash transportation costs."